R v Hargreaves 2026 EWCA Crim 58
This recent renewed application for leave to appeal by a 3rd Party provides some guidance on the positon of 3rd parties and tainted gifts in POCA cases.
The case in my view does somewhat turn on its own facts but nevertheless will provide some issues for any 3rd party in POCA proceedings.
The case does appear to be somewhat long and complex. It involved various members of the same family who were prosecuted by Powys County Council for various offences of both fraud and unfair commercial practices concerning a Teeth Whitening business. The originating summons for the offences were issues on the 19th September 2014 and the restraint orders first obtained on the 25th September The convictions of three family members was in 2016 and so it appears that the POCA aspect of the case has been ongoing in the Crown court for some time.
The appeal was made by a 3rd party, the wife of one defendant who had been originally been subject to the proceedings but against who no evidence was offered in June of 2016.
The applicants appeal in the Crown court proceedings arose from a decision in the lower court in February 0f 2022 when she first sought to vary or discharge the restraint order in place on the basis that it should no longer apply to her interest in what were described as Investment properties as it was first argued that these were not tainted gifts. That positon however was then revised and it was accepted that there was a tainted gift amounting to some £10,000. the Crown court judge refused to determine the level and ruled that the 3rd party should wait until the enforcement stage; the decision being upheld at the Court of Appeal. the Judge rule he did not have to determine any question of the extent of the tainted gift until enforcement stage.
Impact of Ruling
The Court of appeal reinforced the positon that in this case, the 3rd Party will have to wait for the enforcement stage before being able to assert and determine an interest at the Restraint only stage:
 “The Judge’s decision was based on the circumstances of the present case. The Judgment recorded that he was exercising a discretion. The Judge agreed with Powys County Council that the appropriate stage, in the present case, for resolution of the issue is at the enforcement stage.”
 At first glance, this seems to allow for a discretion and I think any future cases will turn on their own facts. This case had a long and to a degree complex history. At first glance it appears that this case will cause some prejudice to 3rd parties – as they will have to wait until enforcement to have determined any interest or tainted gift amount, which can be a significant length of time. That said it remains important that if you are affected by such, appropriate steps are be taken at earlier stages in the proceedings to protect positions.
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